The British Pound began a correction upward against the Japanese Yen as expected following the appearance of positive RSI divergence. Near-term resistance is at 172.88-173.08 area, marked by the 50% Fibonacci retracement and a falling trend line set from early July, with a break above that on a daily closing basis exposing the 61.8% level at 173.47. Alternatively, a turn below the 38.2% Fib at 172.30 opens the door for a test of the 23.6% expansionat 171.58.

The available trading range is too narrow to justify taking a short or a long position at current levels from a risk/reward perspective. We will remain flat for now, waiting for a more attractive opportunity to present itself.